When a small business is faced with price competition from a much larger competitor,it should consider:
A)going head-to-head on prices by lowering its cost structure.
B)using non-price competition by offering value added service.
C)make rapid,continual price changes to keep the competition off balance.
D)move to a premium price strategy by offering higher scale goods and services.

Question

Quizplus · Accepted Answer

Going head-to-head on prices with a larger competitor can be a risky move for a small business, as it may not have the same resources to sustain a price war. Instead, a better option is to focus on non-price competition by offering value-added services, such as personalized customer service, faster delivery times, or more flexible payment options. By differentiating themselves in this way, small businesses can attract customers based on factors other than just price, and build a loyal customer base that is less likely to switch to a larger competitor offering cheaper prices.

When a Small Business Is Faced with Price Competition from a Much